Speech of the President of India, Shri Pranab Mukherjee at the inaugural function of the 7th Edition India CHEM 2012 in Mumbai

Mumbai: October 4,2012

It is a pleasure to be here today for the
inaugural function of India Chem 2012.

The theme for this year's event, 'Emerging
India: Sustainable Development of the Chemical Industry" underscores the
importance and the role of the chemical and petrochemical industry in
the Indian economy. It also underlines, very appropriately, that this
growth has to be sustainable. I am glad to see the enthusiastic
participation from diverse regions of India and the world. There is
today a global focus on sustainability in the chemical industry.
Increasingly, leaders in the chemical industry are rebooting, using the
latest technology to make their enterprises 'green" inspired by
Gandhiji's words, "be the change you want to see".

India Chem 2012 is being held at an
opportune moment . It is an occasion for all involved in this sector to
be informed of global trends, exchange views on green chemistry and
showcase their own products and capabilities. I am confident that the
Indian participants have much to share and significant achievements to
display. I am equally confident that interaction at the Conference would
sensitize the foreign delegates about the various opportunities offered
by India in this sector.

Distinguished guests,

Virtually all sectors of the economy are
closely connected if not directly dependent on the chemicals sector for
their sustenance. This sector provides them a variety of raw material
and key input in the form of chemical products and enabling technical
solutions.

The chemical industry is also one of the
most diversified sectors. As it covers thousands of commercial products,
this sector is the mainstay for the industrial & agricultural
development of the country & provides building blocks for several
downstream industries, such as textile, paper, paint, soap, detergent,
pharmaceutical, varnish, etc. Similarly the petrochemicals and plastic
industry is making significant contribution to many sectors, including
agriculture, horticulture, and healthcare and construction industry.

The development of the chemical industry
in India today is, therefore, a key requirement for her progress. Along
with its key consumer industries, this industry, is increasingly
locating its units in Asia. The share of Asia in the global chemical
industry has increased from 31% to 45% between 1999 and 2009. With
Asia's increasing contribution to the global chemical industry, India
emerges as one of the focus destinations for chemical companies
worldwide. The global chemicals market is estimated at about US$ 3.4
trillion. The Indian chemical industry is currently estimated to be
about US$ 108 billion, that is 3% share of the global market. This is a
very good reason for policy makers and industry to take the lead and
prepare a roadmap. The accelerated growth of this sector should be a
priority given the talent pool and current untapped demand within the
country.

A key factor in its accelerated growth
would be research. I am told that at present the R&D expenditure in this
sector is only about 1-2% of turn-over. This needs to be addressed. It
is in the larger and long-term interest of the industry to increase its
spending on R&D to about 5-6% of the total turn-over. The aim should be
to bring new products that are competitive in the international market.
For achieving this, Govt. of India has taken several pro-active steps in
expanding Research and Development and infusing energy and support for
Human Resource training institutions.

Efforts should be made to nurture the
talent and make sure that the skill development programme matches the
growth requirement of the industry.

Distinguished Guests,

Our National Manufacturing Policy
envisages increasing the share of manufacturing from the present level
of 16% to 25% in GDP by 2025 and creation of 100 million additional jobs
by the manufacturing sector by 2022. The Chemical sector has a very
important role to play in this endeavour. I understand the National
Chemical Policy is currently under preparation and will include measures
to facilitate this.

I would like to emphasize, that along with
growth, the industry must also ensure increased adherence to safety and
international health and environmental standards. The industry must also
promote sustainable development by investing in technologies that
safeguard the environment and stimulate growth while balancing economic
needs and financial constraints. New technologies are evolving for
tackling the problem of industrial waste and the Indian industry should
optimally utilize them. The Indian chemical industry would need to set
targets and standards and take up research and collaborations without
delay.

This is an occasion for the industry
representatives in the fields of Chemicals and Petrochemicals from
across the world to come together to share their vision for the future
growth of the industry.

I am confident that this three day
International Conference would result in fruitful deliberations on all
issues concerning the chemical industry from both domestic as well as
global perspectives.

I thank the Department of Chemicals and
Petrochemicals, Ministry of Chemicals and Fertilizers, Government of
India and Federation of Indian Chambers of Commerce and Industry (FICCI)
for their initiative in jointly organizing this event.

With these words, I have great pleasure in
inaugurating India Chem 2012.

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